📈 Harmonic Elliott Wave — Step-by-Step Trading Guide

🎓 Written for Absolute Beginners (Zero Trading Knowledge Required)

📘 HOW TO USE THIS PLAYBOOK

This playbook is your action manual. The Knowledge Base (KB) explains the “what” and “why.” This playbook tells you the “how” — exactly what to do, step by step, in real trading situations.

Think of it like a recipe book: the KB teaches you about ingredients; this playbook gives you the exact recipes.

🛠️ PART 1: BEFORE YOU TRADE — SETUP CHECKLIST
Step 1: Choose Your Trading Style

  • [] Day Trade (5m to 1H): Minutes to hours. For active traders.
    [] Swing Trade (2H to 6H): Days to 1-2 weeks. For part-time traders.
  • Positional Trade (1D to 12M): Weeks to months. For patient investors.

Step 2: Set Up Your Chart

  1. [] Open TradingView and select your market (Gold, EURUSD, BTC).
    [] Set your primary timeframe based on Step 1.
    [] Add RSI Indicator (14-period).
    [] Have your HEW spreadsheet open alongside.

Step 3: Start with the Bigger Picture
ALWAYS start from a HIGHER timeframe and work DOWN:

https://www.tradingview.com/x/X7hqVHDO/
tradingview.com/x/X7hqVHDO/]https://www.tradingview.com/x/X7hqVHDO/

  • [] Day Traders: Start 4H ➡️ 1H ➡️ Execute on 15m/5m.
    [] Swing Traders: Start 1D ➡️ 4H ➡️ Execute on 2H.
  • Positional: Start 1W ➡️ 1D ➡️ Execute on 1D.

🚀 PART 2: THE 9-STEP TRADE PROCESS
STEP 1: IDENTIFY THE TREND DIRECTION (2 mins) 🔍
Look at your higher timeframe.

  • [] ✅ Uptrend (Higher Highs) ➡️ Look for BUY[] ✅ Downtrend (Lower Lows) ➡️ Look for SELL
  • ⚠️ Sideways ➡️ Wait, don’t trade.

https://www.tradingview.com/x/DPOzH9Bw/

STEP 2: LOCATE YOUR WAVE POSITION (5 mins) 🌊
Identify the recent swings.

  • [] Wave (ii) forming: Pullback after a strong first move. Prepare to enter.[] Wave (iii) in progress: Strongest move beyond Wave (i) peak. Enter now.
  • Wave (v) completing: Final push with RSI divergence. Prepare to exit.

https://www.tradingview.com/x/K6LeDK30/

STEP 3: VALIDATE WITH THE HEW SPREADSHEET (3 mins) 📊
Enter High/Low values into your HEW.xlsx.

  • [] Find the green input cells.
    [] Enter Start Price, Wave (i) High, Wave (ii) Low.
  • Cluster Check: If multiple projections point to the same price, it is a HIGH CONFIDENCE target.

https://www.tradingview.com/x/AOeSsVI9/

STEP 4: TRADE ENTRY — THE 3 BEST POINTS 🎯
A. End of Wave (ii) — SAFEST

  • [] Where: Fib levels 38.2%, 50%, or 61.8% of Wave (i).
    [] Confirmation: RSI momentum turns back toward trend.
  • Stop Loss: Below start of Wave (i).

B. End of Wave (iv) — MODERATE

  • [] Where: 23.6%, 33.3%, or 38.2% of Wave (iii).
    [] Stop Loss: Below Wave (b) of Wave (iii).

https://www.tradingview.com/x/Y2oJRl37/
STEP 5: PLACE YOUR STOP LOSS — NON-NEGOTIABLE 🛡️

Risk Management Rule: Never risk more than 1-2% of your total capital on a single trade.

  • [] After Wave (ii) Entry: Stop below start of Wave (i).
    [] After Wave (iv) Entry: Stop below Wave (b) of Wave (iii).

https://www.tradingview.com/x/xcc6FdZd/
STEP 6: SET YOUR TAKE PROFIT TARGETS 💰
Use a tiered approach (Take profits in stages):

  1. [] Target 1 (Conservative): First Fib projection. Take 33% profit.
    [] Target 2 (Moderate): Second projection (Cluster area). Take 33%.
  2. Target 3 (Aggressive): Extended projection. Let 34% run.

https://www.tradingview.com/x/ndo0Yi16/

STEP 7: MONITOR WITH RSI 📉

  • [] New Highs with Price: Trend is strong. HOLD.[] RSI Divergence: Price higher, RSI lower. TIGHTEN STOP/EXIT.
  • RSI breaks 40 (Uptrend): Trend change warning. REDUCE SIZE.

https://www.tradingview.com/x/teYbCDjF/
STEP 8: EXIT THE TRADE 🚪

  • [] 🛑 Stop Loss Hit: Exit immediately.
    [] ⚠️ RSI Divergence at Target: Exit most of the position.
  • 🎯 Price hits Wave (v) projection: Full Exit.

https://www.tradingview.com/x/czqaTl0R/
https://www.tradingview.com/x/SvuBLXjM/

📝 PART 3: THE TRADER’S LOG
After every trade, document:

  • [] Which wave did I identify?
    [] Where was my stop and why?
  • Did I follow the RSI confirmation?

https://www.tradingview.com/x/7OhOCajJ/

https://www.tradingview.com/x/kTaOh6a1/

https://www.tradingview.com/x/2WhI92mm/

https://www.tradingview.com/x/KDP8flaS/

https://www.tradingview.com/x/Zp4lx0S4/

🏁 QUICK CHEAT SHEET (Bookmark This!)

UNBREAKABLE RULES:

Wave (ii) NEVER retraces 100% of Wave (i).

Wave (iii) is NEVER the shortest.

Wave (iv) doesn’t overlap Wave (i) territory.

Wave (iv) NEVER passes Wave (b) of Wave (iii).

NO Quadruple Threes — Triple Three = guaranteed end.

https://www.tradingview.com/x/CbubEeB2/

Trade safe and always follow the count!

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